Many renters, including students, don’t always appreciate the value of their possessions and believe that their valuables are covered under their landlord’s policy; which is not true. Others may feel renter’s insurance is an unnecessary expense or they simply overlook it altogether.
While many away students might not own expensive appliances or furniture, what they do own often has a high replacement cost, such as laptops, tablets, game consoles, textbooks, smartphones, sports equipment and musical instruments.
There are three important facts to consider:
- A landlord insures the building itself, not the possessions of individual tenants. Tenant insurance is so important that some rental agreements even require proof that a policy is in place.
- You and/or your child are vulnerable to the cost as a result of loss or damage when not protected by a tenant insurance policy.
- The landlord’s insurance will not necessarily cover all claims, as a determining factor is who is responsible for the damage or loss.
Also, consider the potential for liability if your student or guest to their rented dwelling is determined to be negligent. Most tenant insurance covers:
- Damage
- Theft
- Loss
- Liability
- Unexpected living expenses arising from loss or damage
- Lawsuits related to your child or their guests’ actions or negligence
Although nearly half of Canadian renters do not have tenant’s insurance, students are particularly vulnerable to claims as typically student housing has high rates of turnover, a lack of background checks and, of course, parties and social events.
Full-time post-secondary students are often covered under their parent’s house insurance policy. However, it’s essential that you or your student speak with an insurance professional to determine what type of policy, coverage amount, etc., that best suits the individual needs.
For those students not covered under their parent’s house insurance policy, it’s a good opportunity for them to establish an insurance history. Tenant insurance is also very reasonably priced and may help your student be eligible for insurance premium savings in the future.
Three final considerations:
- Be sure to understand if the tenant policy offers Actual Cash Value (ACV) or Replacement Cost. Imagine needing to replace a $2,000 laptop, but its depreciated value is only $400.
- If your student away has a vehicle and vandalism combined with theft occurs, it’s beneficial for them to have both an auto and tenant insurance policy with one company, it could save having to pay two separate deductibles.
- Be sure your away student records a video inventory of all their possessions and include the condition of their rental unit in the event of an insurance claim.